Policy on Distribution & Rights Of Succession Of Revenue Derived from Technology Transfer

Adopted: November 5, 1999

Amended: July 1, 2005

Current Distribution of Revenue from Licensing Activity

Background

Under Guidelines to the Washington University Intellectual Property Policy, revenue generated from licenses are distributed as follows: 35% to the creator and 65% to the University, distributed as described in Section A2. below. This distribution will be reviewed from time-to-time by the Committee for Faculty Oversight of Technology Transfer, which may recommend adjustments or amendments to the Vice Chancellor for Research.

At the time the license is signed, creator(s) will execute an agreement indicating the manner of distribution of personal income (i.e., to be retained as personal income in total, to waive all income, or to retain a portion as personal income and waive a portion to the Creator's laboratory). IRS regulations require that the decision to waive income be irrevocable and made prior to receipt of any of the revenue. (See Section B.1)

The Policy on Distribution and Rights of Succession of Revenue Derived from Technology Transfer ("Policy") is intended to address treatment of creator income-whether personal or waived to the laboratory-in the event of death, relocation, or retirement of the creator.

Current Revenue Distribution

Creator(s) — 35% - taken in total, either as personal income or waived for use in the laboratory

Creator(s) School — 40% - used to support research in the School

Office of Technology Management (OTM) — 25% used to support the OTM operation

Change in Distribution of Revenue and Rights of Succession

Waiver Of Portion Of Creator(s) Share For A Limited Period

Creator(s) may waive all, or a portion, of their personal revenue share for the duration of an executed license or for a fixed term of 5 years provided that:

The waiver must occur before the creator has the right to receive income for IRS purposes.

All decisions are irrevocable.

An explanatory memorandum will accompany the revenue distribution form that explains the creator(s) options and implications of the decision. Note: Federal and state tax codes currently exist that may have significant impact on the receipt and waiver of personal income and their relevance will depend, in large part, on individual circumstances. Therefore, it is strongly recommended that creator(s) seek the advice and counsel of their own attorney or other tax advisor before making any decision as to revenue distribution.

Distribution of Personal Income Share in the Event the Creator Resigns from the University, Retires or Dies.

When a creator (whether faculty member, staff or student) resigns from Washington University, retires or dies, any personal income due from technology commercialization will continue to be paid to the creator, or the creator's estate.

Distribution of Income Waived by the Creator for the Benefit of the Laboratory in the Event that the Creator Resigns from the University, Retires or Dies.

In the event that the Creator(s) resign from the University, Retires or Dies, any portion of income waived to the creator's laboratory will continue to be paid to the Dean of the Creator's school to be used to further the research mission of the school.

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